Now comes our Congress, eager to feed the public’s lust for punishing the banks for having done our economy so much damage, and ready to impose a new bunch of regulations on that industry so as to protect the consumer from…. From what?

Here’s what the public really needs protection from:

1. Its own ignorance. This is certainly number one! Had the public been at all intelligent or educated about borrowing, they would have known better than to expect either the government or the lenders to protect them against borrowing beyond their means for homes they couldn’t afford. The first issue is financial literacy, which is sadly lacking in our society, our schools—and especially our Congress to begin with! Read more…

Ellis Current Events, Food for Thought, Stock Market Shams banks, congress, financial literacy, protective legislation, securities industry

Watching and listening to the Congressional inquisitions this past week, I had to believe that the Academy Awards needs to add a new category called Best Congressional Performances. Of course it would be difficult to decide whether the performances should be considered under Comedy or the Drama categories.

The righteous indignation and wrath displayed by the key players was great theater, of course, and played well to those political populists who still don’t understand that it was this very same Congress that forced these institutions go into the sub-prime mortgage business against their wills in the first place! Read more…

Ellis Current Events, Food for Thought blame where it belongs, congress, executives, Goldman Sachs, responsibility for meltdown

Yep, it’s the time of year to set some goals and to figure out how to reach them.

As I mentioned Tuesday, I’m looking for answers to the question: why have we not made more headway in convincing the world they can invest successfully. That’s my sole goal, at the moment—other than heeding the best advice I’ve ever received: “Keep breathin’.”

And my sole resolution is to pursue this course, find out the real reasons why no one is interested in investing, and then do something to correct it.

I realize that this nation has had a series of setbacks during the past year—the past decade, actually. But the good news is that, as a nation, we’re still breathin’.

Sure, we’ve seen some grossly ignorant, political giants smash gaping holes in the hull of our ship of state. And, even as the water swirls around their hips, keep swinging to widen those holes in hopes the water will flow out instead of in.

Our democracy is under siege from within because the average voter believes in magic! Healthcare, all the entitlements—social security, Medicare—all of the admirable, altruistic, do-good projects, from the earmarks that benefit a small town (and buy another term for some Congressman), to the rights-nee-privileges and necessities-nee-luxuries that we all hound our legislators to get for us—will be paid for by a bunny rabbit that pops out of someone’s hat! (No one’s come up with a more plausible scenario to date!)

So, let’s all resolve, in the coming year, to respect those who think differently from us and vow to help them realize their goals. Let’s retreat from the personal castigation and try to help our president be a better president instead of trying to take him down.

We’re way out on a limb. Let’s quit hacking it off the tree!

And if this wasn’t enough of a collection of metaphors for you, I’ll try to come up with some more!

Ellis Current Events, Food for Thought, Fundamental Investment Views congress, dumb legislators, earmarks, luxuries, necessities, privileges, rights, sinking ship of state

Charley Reese, retired Orlando Sentinel columnist, wrote a column some years back that I believe should be preserved as a classic. You may read it here: “The 545 People Responsible For All Of U.S. Woes.” He’s updated it since he first wrote it, but only to change the names of the individuals who occupy the positions he speaks about.

Although you might have read it at one time or another, I think it’s worth another read since it so articulately and succinctly expresses my view as I’ve expressed it here from time to time.

s Current Events, Food for Thought blame for problems, congress, government, public office, responsibility

Who would have thought that legislative bad judgment could have such swift and telling consequences on our country! Normally, when the Congress of the United States makes a mistake, the full measure of tragedy surfaces so gradually that both sides have plenty of time to collaborate in creating credible reasons to blame each other. And the public seldom gets the true picture until long after the dust has settled.

Not so this time. The length of time that it took the (as usual, well-intended) horribly bad legislation to translate into a deal Wall Street couldn’t refuse—and a temptation our financially illiterate public couldn’t resist—was astonishingly short.

Ellis Current Events, Food for Thought apathy, bad decisions, congress, Harry Potter, Legislative decisions, legislators, retrospect, rob from the rich, Robin Hood

We’ve reached a point where even the most liberal side of the political aisle has commenced to show some concern about our being able to afford to throw money around quite so lavishly in the name of resurrecting a fallen economy. And, I’m hearing some voices, other than those on the right, questioning the wisdom of providing funds to enable lenders to override their good judgment and continue to offer credit to those unworthy of it, in the interest of reviving critical sectors of the economy that have taken a beating: housing, automotive, etc.

What do you think, folks? Can we do it? Can we emerge from this economic crisis in some semblance of economic health?

Read more…

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